Italy Energy Information

Italy Energy Research

- Italy's Energy & Climate Policy Framework: Italy aims for 39% renewables by 2030, reviving nuclear with SMRs. The Ministry of the Environment and Energy Security (MASE) oversees energy policy, supported by ARERA, ENEA, and CIPESS. The National Recovery and Resilience Plan allocates EUR 75.8bn to green transition, including EUR 34bn for sustainable mobility and EUR 15bn for energy efficiency. The Energy Decree (2023) aims to boost energy security and renewables, with new offshore wind projects and LNG terminals. Italy plans to phase out coal by 2025, except in Sardinia. The updated NECP (2024) sets targets for energy efficiency, renewables, and CO₂ reductions. The liberalised electricity market covers 93% of consumption, with regulated tariffs removed for most customers. Italy is also investing in green hydrogen and nuclear energy, with a law allowing nuclear power approved in 2025.

- Italy's Energy Companies: Enel, Eni, A2A, and Edison dominate Italy's energy sector, leading in electricity generation, gas supply, and retail markets. Enel is the largest power producer, while Eni leads in gas production and imports. Key players also include Terna and Snam in transmission, and Italgas in gas distribution. The sector is marked by strategic investments in renewables and infrastructure.

- Italy's Energy Supply & Demand: Italy's energy mix has seen a 21-point increase in CO₂-free sources since 2010, reaching 44% in 2024, with solar contributing 13%. Total energy consumption has declined by 28% since its 2005 peak, driven by higher power imports and renewable energy growth. Oil and gas account for 73% of primary energy consumption, while per capita consumption is 18% below the EU average. The country imports 19% of its electricity and 90% of its oil and gas.

- Italy's Energy Use & Price by Sector: Since 2010, final energy consumption has declined by 1% annually, with buildings and transport sectors leading demand. Electricity's share is rising, while gas prices have dropped since 2023. Government measures have mitigated price surges.

- Italy's Issues & Prospects: Italy aims to become a European energy hub, focusing on renewable energy expansion, gas pipelines, and hydrogen projects. The updated NECP 2024 targets 131 GW of renewable capacity by 2030, with significant investments in solar, wind, and energy storage. Nuclear projects, including SMRs, are being explored, while gas and LNG projects face delays. Transmission and interconnection projects, such as Terna’s Hypergrid, aim to enhance grid capacity and integrate renewables. Italy also plans to develop green hydrogen infrastructure, including pipelines and storage, to support decarbonisation efforts.

Italy Total Energy Production & Consumption

Total energy consumption has been declining since 2021 (-3.7%/year), reaching 134 Mtoe in 2024, in a context of high energy prices and geopolitical concerns. Overall, it has fallen by 28% since its 2005 peak and now stands 9% below its 1990 level. The decrease in primary consumption is mainly due to higher power imports and the increased share of renewables in the power mix. Per capita consumption is 18% lower than the EU average (2.3 toe in 2024).

Graph: Primary Consumption Trends by Energy Source

Source: Italy energy report

Interactive Chart Italy Total Energy Production & Consumption

Source: Global Energy & CO₂ data

Italy Oil Production & Consumption

Crude oil and NGL production is low, ranging between 4 and 6.5 Mt/year since 2000. Despite an 18% rebound in 2023 to 5.7 Mt after two years of decline, it fell again by 17% to 4.7 Mt in 2024.

Crude oil imports contracted by 8% in 2024 to 58 Mt, covering 86% of oil consumption. Five suppliers accounted for 70% of crude oil supply in 2024, namely Libya (21%), Azerbaijan (16%), Kazakhstan (15%), Iraq and the United States (9% each). Russia, which accounted for 19% of imports in 2022, did not export oil to Italy in 2023 and 2024.

Source: Italy energy report

Interactive Chart Italy Crude Oil Production & Consumption

Source: Global Energy & CO₂ data

Interactive Chart Italy Refined Oil Products Production & Consumption

Source: Global Energy & CO₂ data

Italy Natural Gas Production & Consumption

Gas production has been declining sharply since 2012 (-9%/year), reaching 2.9 bcm in 2024, i.e., less than 5% of domestic gas consumption. In August 2024, Eni started production at its Argo Cassiopea gas field (10 bcm of estimated reserves), which is expected to reach a peak production of 1.5 bcm/year.

Source: Italy energy report

Interactive Chart Italy Gas Production & Consumption

Source: Global Energy & CO₂ data

Italy Coal and Lignite Production & Consumption

Coal imports, which had increased by nearly 60% between 2020 and 2022 in line with the rise in gas prices, fell by 39% to 7.4 Mt in 2023 and halved to 3.6 Mt in 2024. Previously, they halved between 2012 and 2019 to less than 11 Mt and fell by 30% to 7.6 Mt in 2020, following the 72% fall in coal-fired power generation between 2012 and 2020. Coal production stopped in 2016 and was very low before that (less than 1 Mt since 1990).

Source: Italy energy report

Interactive Chart Italy Coal and Lignite Production & Consumption

Source: Global Energy & CO₂ data

Italy Renewable in % Electricity Production

The updated NECP (2024) raised the 2030 targets for the share of renewables in final consumption to 39.4% (+9.4 points), including 63% for electricity, 36% for heating and cooling, and 34% in transport. It also targets 42% to 54% of renewable hydrogen in total hydrogen consumption in industry by 2030. In 2023, renewables covered 19.6% of final energy consumption (38.1% for electricity, 21.7% for heating and cooling, and 10.2% for transport). Italy exceeded its 2020 renewable targets by 3.4 points, with a share of renewables in final energy consumption reaching 20.4%.

Source: Italy energy report

Interactive Chart Italy Share of Renewables in Electricity Production (incl hydro)

Source: Global Energy & CO₂ data

Italy GHG emissions and CO₂ emissions

The updated NECP (2024) aims at cutting GHG emissions for all ETS sectors by 58% (up from 43% in the 2019 NECP) and for all non-ETS sectors by up to 29% in 2030 (from 33%) compared to 2005. Italy also aims to remove 28 MtCO2 from the LULUCF sector.

Source: Italy energy report

Interactive Chart Italy CO₂ emissions

Source: Global Energy & CO₂ data